Fiscal Note
Establishment of these new post-retirement health plans will have no significant net cost to the City beyond the commitment of available staff resources during the period of initial conversion. Under the terms of these new plans, the City will no longer incur FICA expense associated with retiree deposits into the accounts (currently in the range of $25,000 - $30,000 per year) but will also forego the 1% annual administrative fee retained in the past to administer individual employee accounts ($30,000 per year based on current account balances).
Title
SUBSTITUTE - Establishing the City of Madison Post-Retirement Sick Leave Conversion Medical Reimbursement Plans and Trusts and a 401(a) Plan and Trust, authorizing execution of other documents.
Body
WHEREAS, the City has offered a plan for retiring employees to convert accumulated sick leave to cash or for use in purchasing health insurance for retirees, embodied in secs. 3.36(6)(e)2. and 3.52(1)(b)3., MGO: and
WHEREAS, the City Attorney has determined that the current City plan for payment of post-retirement insurance premiums from the value of accrued sick leave should be modified; and
WHEREAS, the City Attorney, the Comptroller and the Interim Human Resources Director have interviewed four firms to offer a new Plan to the City of Madison; and
WHEREAS, it is recommended that the City choose the Prime Choice Plan offered by Precision Retirement Group, Inc. and J.D. Benefits, Inc., because it is in the best interests of the City and its employees; and
WHEREAS, the Common Council has reviewed the Report of the City Attorney, Comptroller and Interim Human Services Director dated July 12, 2006, and finds that adoption of the Plans and Trusts as described therein is in the best interests of the City of Madison and its employees; and
WHEREAS, the Plan will initially be put in place for non-represented City employees; and
WHEREAS, the Plan also will be available to employees through...
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